Manufacturing business involves complex and complicated business operations as different processes like procurement, production, storage, shipping and delivery, each of which possess some or the other risk.
A little negligence or mishandling of these operations results in huge loss to business in turn shows negative impact on business revenues. Hence, insuring different business processes or covering each and every risk and liability is an important aspect to consider for every manufacturer. Here, we will discuss on the importance of business insurance and why it is necessary to take manufacturing insurance for the manufacturing business.
The different kinds of coverages included in the manufacturing business insurance are:
- Product Liability Insurance: Product liability insurance is generally provided through the general liability insurance but if the company is not offering general liability insurance, you need to take product liability for sure. Because, as you are into the business of manufacturing products, any bodily injury or property damage caused for usage of your product results in claims against your business.
- Business Contents Insurance: This policy covers your business machinery, plant, trade contents, inventory and stock against a range of disasters such as explosion, fire, storm damage and theft involved in the premises.
- Business Interruption Cover: This policy helps you stay in business by covering loss of gross profit or loss of income for the company. Thus, it helps your business to run smoothly without any interruptions in your business activities.
- Employer’s Liability Insurance: This policy will help you compensate the medical and hospitalization costs that can be incurred in the event of claims by your employees in case of any injury or illness caused by your negligence.
- Machinery Breakdown: As the manufacturing business needs huge machinery to produce products, you need to take care of your machinery be insuring them with appropriate coverage.
Thus, before you start to run a manufacturing business, assess all the risks associated and insure your business with appropriate coverage.